"China will avoid a hard landing and is focused on ensuring long-term medium-to-fast growth, Premier Li Keqiang told global leaders in Davos, after the country reported the slowest expansion since 1990."
While the economy will still face large downward pressures in 2015, China won’t have systemic financial risks and will seek to improve the quality of growth to ensure an “appropriate” pace of expansion, Li said Wednesday in a speech at the World Economic Forum in the Swiss ski town.
The comments came a day after China reported 7.4 percent growth for 2014, the slowest in 24 years and the first failure to meet the target this century.
At the same time, the $10 trillion economy has shown signs of rebalancing with the rise in incomes exceeding the bump in GDP, helping propel consumer spending and services.
“China has much room for urban, suburban and regional development, and domestic demand has huge potential,” Li said.
“China’s condition will continue to improve and China will bring more opportunities to the world if China’s economy keeps growing at medium to fast speed for 10 to 20 years.”
Read more: Li reiterated that China will pursue a prudent monetary policy and proactive fiscal policy.